Table 12-1
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​ -Refer to Table 12-1

question 129

Multiple Choice

Table 12-1
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$$\begin{array} { | c | c | } \hline \text { Person } & \begin{array} { c } \text { Value of a White Water Rafting } \\\text { Trip } \\\text { (Dollars) }\end{array} \\\hline \text { Ken } & 150 \\\hline \text { Alex } & 120 \\\hline \text { Brenda } & 90 \\\hline \text { Rob } & 60 \\\hline\end{array}$$
-Refer to Table 12-1. Assume that the price of a white water rafting trip pass is $55 and that the price reflects the actual unit cost of the trip. What is the value of the surplus that accrues to all four participants from their trip?

• A)$95
• B)$65
• C)$200
• D)$35

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Definitions:

Sunk Costs

Sunk costs are past expenditures that cannot be recovered and should not affect future business decisions since they remain the same regardless of the outcome.

Cost of Goods Manufactured

The total cost incurred to manufacture products, including materials, labor, and overhead, during a specific period.

Finished Goods Inventory

Refers to products that have completed the manufacturing process but have not yet been sold.

Variable Costs

Expenses that vary in direct relation to the volume of production or sales transactions.